08, July 2016

XAU/USD (a 4-hour chart)

XAU/USD (a 4-hour chart)

General overview

On Thursday, the yellow metal traded near 28-month high. The unemployment reports in the USA came in better than expected. That news supported the dollar and slowed down the growth of the gold.

Current situation

The gold decreased on Thursday after a rally to its highest level since 2014 on Wednesday. The gold futures lost about 0.50% during the course of trades. However, the pair was able to return some of its losses. The resistance is at 1390, the support comes in at 1360.

MACD and RSI decreased from the oversold area. However, the indicators remained in a green zone. If RSI returns into the overbought zone it will be a buy signal. The moving averages (50, 100 and 200) are moving upwards in the 4 hours chart. The XAU/USD bounced upwards from the 100-EMA in the 1 hours chart. The 50-EMA acts as a resistance for the price.

Trading recommendations

We believe the growth will be continued now. The target is the level 1390.